Outsourcing Software Development

As leading software developers, we know that many clients are concerned about outsourcing web
development. Is it a good idea? How can I be sure of the developer I choose? Why cannot I build
everything by myself? If I hire an outsource development team, is it better to pay per hour or a
fixed price per project?

Case Studies

Whu Would You Want to Outsource Software Development?

Outsourcing app development is an obvious choice for a company that does not specialise in software
development or just does not have enough time and human resources to deal will with it in-house.
Outsourcing app development frees your hands - you have time to concentrate on other important things
like app marketing, mobile strategy, establishing your brand online and so on. Another advantage is that
you do not have to learn a programming language and do not even have to know anything about software
development.

Pros and Cons of Outsourcing Software Development

Of course, outsourcing software development largely depends on your financial capacity and time you
have to get your product to the market, but let us examine other advantages and disadvantages of
building software with third-party developers:

Freelance Developers

Pros

Easier to hire. Shorter lead times mean that you can get your product to the market
faster.

Lower costs. You can hire any developer you like from any corner of the world, paying in
dollars or euro, which gives you an opportunity to take advantage of differences in
prices.

Great for smaller projects. Freelancers are an ideal choice for delegating small tasks
and minor projects, increasing speed to market and sparing you from spending much time
on secondary tasks.

Cons

The risk of exposing intellectual property. Outsourcing the development of a digital
product poses a threat to your company’s intellectual property.

Miscommunication. If the freelancer is based in a different country with a different
time zone, it can be hard to find time to meet and discuss the project that will be
convenient for both of you. Another problem is cultural differences and poor knowledge
of the language you speak, which again may cause delays and misunderstandings.

Different coding and design standards. It is important that the developers understood
the digital trends that exist on the market of your country. It is much easier to do
when you work and reside in the country for which you develop the product.

More control from your side. You often have to check with the developers from emerging
markets, track their progress and discuss your requirements time after time. This all
can result in miscommunication. Especially if you do not have a clear vision of the end
project and have not supplied the developer with a software requirement specification.

Unreliable developers. You never know whether the information the developers provide
about themselves is true, so you can never be sure in the outcome of the venture.

Outsourcing to Software Development Companies

Pros

Good for projects of all scope. Large digital agencies are proficient in delivering all
kinds of projects: they build prototypes, create MVPs (Minimum Viable Products), design
responsive website, develop native mobile apps and offer post-launch support and
marketing services.

Effective communication. If the company you hire is based in your country, then there
will be no problems in communication - the same culture, the same time zone, you can
even meet face-to-face. Moreover, experienced design firms typically have all kinds of
specialists to ensure the best experience for the client - project managers, support
specialists, sales managers, business analysts and more, not even speaking of technical
experts. As a result, this combination of leadership and technical talents enable them
to provide you with first-class software in no time.

Certified experts. Most reputable agencies carefully select their specialists, offering
jobs only to the leading industry experts with large portfolios and extensive range of
skills.

Cons

Higher costs. Experienced development team charge more per hour, especially those
located in the US or Europe. However, given the high quality of their products, your
newly designed program will pay for itself soon enough.

Other clients. You should understand from the very beginning, that you cannot be the
development company’s only client - they have other projects to work on, so they will
not be able to pay you 100% of their attention.

Our Achievements:

322 App Development Projects

413 Mobile Applications

75 Enterprise Software Solutions

Why Outsourcing Program Design May Be Worth IT

Many companies prefer building software in-house, utilising their internal resources rather than
hiring third-party companies to deal with the task.

Statistics shows though 60% of enterprises entrust program creation to their own digital experts,
the number of companies that choose to outsource such projects steadily grows. Around 30% of all
software, creation projects are delegated to third-party development teams, with digital agencies
focusing on enterprise apps, bespoke solutions and customer-centered mobile applications. Designing
an app in-house is a logical solution for companies that want to have full control over the process
and the steps developers take to complete the project. The main problem is that if you do not pay
attention to the ever-changing digital economy and trends in the app market, you will not go far.

A recent survey of entrepreneurs across different industries showed that more than 30% of
them had chosen to outsource app design to build enterprise software for inner use.
Approximately the same percentage of people who took part in another research confessed that
they hired freelancers or digital agencies to build B2C applications because, as they said,
professional developers had more expertise in the required technologies than their in-house
teams.

The report also says that app creation cost is the primary question that businesses ask when
choosing the company to outsource mobile projects. And the answer they receive in most cases
is “What is the budget you wish to allocate for the project?”. App design costs depend on
many factors, the key ones being the objectives you want to achieve with the product and the
features you wish to implement within the app.

Given that 4.4 million apps are available to the users of two industry-leading mobile app
markets - Apple’s App Store and Google’s Play Store - one could only wonder at the fact that
there are companies that have not even thought of developing a mobile application and have
no idea about the benefits it can bring. Taking the fierce competition and the predominance
of mobile usage, app development is a must for modern businesses that wish to stand out.

App development costs depend on the location of the developer, their experience and the size
of the design team that is going to work on your project. When planning the budget, keep in
mind that only mobile design can account for up to 30% of the investment. For example,
American developers can charge as much as $300 per hour, but if you are sure that this is
the developer you want to work with, go for it - a quality app will certainly pay off and
earn you even more.

Last year a report on app development costs across the world was held. It demonstrated that
the USA is the most expensive country for software design, while Indonesia ranks as the
cheapest place to outsource your project. Developers’ experience is another important factor
to consider. Industry expert recommends to choose developers with at least three years of
experience, at the same time, the age of the developers does not matter. Many developers
from the modern generation had started creating software when they were teenagers, so you
should not be surprised when developers at their 20s charge premium rates.

There is a common misconception that development companies of smaller size charge less, but
that is not the case - the size does not matter. Small to medium sized software design teams
often charge more because they do not have the resources large companies have. It is not
rare that smaller firms claim to be more flexible, agile and innovative, and make it the
reason to demand more money for their work.

Clients

The Developer You Can Rely on

At our software design company, we strive to build a long-term partnership with our clients to
ensure success and profitability of our digital products throughout their entire lifecycle. Our
first-class solutions are based on an in-depth understanding of the client's business and close
communication with every client as we try to go dip into the needs and requirements of their
projects.

Build Your Next App With Us

Our experienced developers, designer and managers never stop until they reach perfection - we are
motivated by challenges and are ready to face tasks of any complexity, because that is what makes our
jobs exciting.

If you have an idea of a digital project you wish to bring to life, you can totally rely on us - we
will supply you with valuable advice and help you develop a comprehensive solution that will add
value to your business and appeal to your customers. Drop us a line, we will be glad to hear from
you.

Magora is a trading name of Thinking Fish Ltd
a company registered in England no. 3637036 at Concorde House, Grenville Place, London, NW7
3SA

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